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10 KPIs to Measure the Performance of an Online SME

These are the indicators that tell us what online marketing actions work and which ones do not.

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These are the ten KPIs (Key Performance Indicators) of online marketing in which any startup should look to see if their strategy is on the right track. They have been identified by the data analysis and visualization company Toucan Toco, which explains them as follows:

RETURN OF INVESTMENT IN MARKETING (ROMI)

It will help us to evaluate if the investments made in marketing actions contribute to obtain benefits and to better understand where the budget should be assigned in order to obtain the best results. “If a campaign generates a 15% return and another a 70%, it is easy to see where to invest the future budget. At this point, it is important to consider measures such as brand awareness in these indicators to quantify the less tangible benefits and better guide future campaigns. “

CONVERSION RATE OF POTENTIAL CUSTOMERS

“It is the percentage of individuals or companies potentially interested in buying a product or service and that end up becoming opportunities. It is essential to understand how sales are channeled and which marketing campaign has the best impact on the ROI of the company. If 100 potential customers were created and 25 potential customers were converted into opportunities in a month, the rate would be (25/100) x 100 = 25%. “

CONVERSION RATE PER COMMERCIALIZATION CHANNEL

“To maximize the conversion rate of contacts it is essential to identify which channels reach the most qualified: e-mail marketing, events, inbound… In this sense, it is necessary to calculate the average conversion rate of each of the channels to give priority, in terms of investments, to the most efficient and improve those that offer fewer opportunities “.

COST PER POTENTIAL CUSTOMER

“With it, the effectiveness of marketing actions is evaluated, thus making strategic decisions and maintaining control of the advertising budget, an important aspect, since Hoyreka’s report! it ensures that in 2018 the number of companies that invested 1,000 euros monthly in content marketing increased by 14%. The cost of each generation of leads is divided by the total number of leads created in that campaign. “

CUSTOMER’S VALUE OF LIFE (CTV)

“It is a forecast of the profits generated by a company based on the relationship with each client. Increasing this rate will allow maintaining a link with customers, stabilizing the participation rate, improving satisfaction and estimating a reasonable price for each customer acquisition. You must subtract the initial cost of acquiring a client from the income obtained from it. “

ORGANIC TRAFFIC

“The first is the one that arrives on the web by free search engines, such as Google, Bing or Yahoo and should represent more than half of the total traffic. SEA refers to the traffic generated by paid marketing, thanks to pay per click ads, allows complete control of online campaigns and shows instant traffic, but has an economic cost. Both indicators can be measured with integrated analysis tools from CMS, Google Analytics or a data visualization solution.”

WEB TRAFFIC OF POTENTIAL CLIENTS

“It’s an essential measure, but it could be misleading, because you can receive a lot of traffic, but if visitors do not become potential customers, there’s something wrong with the strategy. The key is to measure traffic based on other criteria, such as with potential customers, since the efficiency of marketing actions and their impact on the ROI of the company is evaluated. If you have 1,000 visitors and 100 new potential customers in a month, the proportion of web traffic with respect to potential customers is 10%.”

ROI GENERATED BY SOCIAL NETWORKS

“Monitoring this rate is critical to assess the performance of the strategy. All efforts of social media must be traceable, so that the value of a campaign can always be demonstrated. As in point 7, its scope should be considered in the perspective of its impact on conversion rates and the return on investment, to achieve a strategy that goes beyond a notoriety objective. The revenues of each channel must be divided among the expenses that were made in them. “

POST OPENING RATE AND CLICK (CLICK THROUGH RATE)

“Two essential KPIs to know the performance of the mailing campaigns. The first evaluates the relevance of the issues of the mails and highlights the quality and the degree of participation of the mailing list; and the CTR – percentage of people who have clicked on a link in an email – allows me to tell the efficiency of Call To Action. For the first, the number of open emails is divided by the number of emails delivered and multiplied by 100 and for the second, the number of clicks is divided into a link between the number of emails sent and multiplied by 100.”

CLICK TO OPEN RATE (CTOR)

“The email report in which the user clicks on a link, in contrast to the number of unique openings. It evaluates the effectiveness of the content of the emails sent and is calculated by dividing the number of unique clicks by the number of openings and multiplying the result by 100. If this varies between 20 and 30%, it is a good figure. “

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